KARACHI – Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Thursday said securing loans worth billions of dollars amid claims to economic stability is surprising.
It is claimed that the economy is on the right path but oil is being sought on deferred payment which is amazing, he said.
In the course of strengthening inflation and a severe economic crisis, the country is now in the grip of a serious political crisis that is affecting both the people and the economy, he said.
Shahid Rasheed Butt said that protests by a party have added to the government’s woes.
In a statement issued here, he said that a loan worth 3.2 billion dollars will not end the economic crisis but will avert a default temporarily.
The Saudi loan will stabilize the rupee to some extent, but soon the government’s policy of increasing the growth rate at all costs will have an effect.
Soon the government will have to seek loans again, the conditions of which will be stricter than the current conditions, he observed.
He said that the current economic crisis has proved that government experts have not only caused losses of billions of rupees to the government by not buying LNG in time, they also relied too much on remittances while failing to foresee a hike in oil and commodities in the global market.
The government economic team has not been able to predict the rise in food prices, which is now affecting the people and have lost their hope of getting any relief.
He said that the government intends to abolish tax exemption from various sectors up to Rs. 330 billion which is a welcome decision.
